PNB financing auto loan

**kmb333** · September 2nd, 2016 08:49 PM

Bought a 2nd hand car. The owner has 4 payment installments left, so when i bought his car we went to the bank to fully pay his autoloan. He deposited the remaining balance (178k) in his own pnb bank account because he said that his payment method is thru auto debit. We informed the branch manager that i am buying his car and that we are fully paying his auto loan. Question is, how long does it usually take for PNB to release the car's documents?
What are the documents should i receive from them aside from original OR and CR?
Will they clear the encumbrance at the registry of deeds or am i the one who should clear its encumbrance?

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**dreamur** · September 3rd, 2016 02:37 AM

The balance should have been paid directly to the bank snd not deposited to his bank account. There is risk that he will withdraw it and abscond on the unpaid balance.

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**yebo** · September 3rd, 2016 07:55 AM

correct si dreamur dapat nag full pay na sa bank agad hindi na dineposit pa sa acct nung previous owner. ang dali kang takbuhan nyan iwidraw lang nya yung pera yari ka na. and how sure are you na yung checking acct na yun ang gamit nya sa pagbayad sa loan nya????

as to the process when the loan is paid in full the pnb branch wiĺl give you a notice and you will be required to pay a processing fee for the cancellation of the chattel mortgage. nasa p1.5k if i remember right. then makukuha mo na yung original or/cr from the bank branch.

**dr. d** · September 3rd, 2016 09:03 AM

that the bank representative is aware of the deal, is in your favor. that means, may witness.
hopefully, he is not in cahoots... hindi naman siguro. he has a steady job with that bank, e.

who will pay the mortgage release? that would depend siguro on the original deal with the first owner and the bank.

**Juan Martinez** · September 3rd, 2016 09:12 AM

Originally Posted by kmb333

Bought a 2nd hand car. The owner has 4 payment installments left, so when i bought his car we went to the bank to fully pay his autoloan. He deposited the remaining balance (178k) in his own pnb bank account because he said that his payment method is thru auto debit. We informed the branch manager that i am buying his car and that we are fully paying his auto loan. Question is, how long does it usually take for PNB to release the car's documents?
What are the documents should i receive from them aside from original OR and CR?
Will they clear the encumbrance at the registry of deeds or am i the one who should clear its encumbrance?

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So, it is already water under the bridge because you already have deposited your money into the seller's account.

Now, my question is, did you have have possession of the car now?
Another question, do you know the seller very well?

You know what, the problem will arise IF the seller will withdraw all the money, close his account, and the PNB cannot be paid anymore. Please take note that the car, as far as PNB is concerned, is still mortgaged with them. So, if they cannot be paid with monthly amortizations as they fall due, PNB may forclose the chattel mortgage on the car. And it will not release or cancel the chattel mortgage unless and until the PNB is fully paid. Right now, PNB is not yet fully paid even if you have already paid the seller the whole amount. In other words, you take a huge risk in this transaction. You better go back to the seller, get your money and pay the bank directly.

Hope this helps.

By the way, KMB333, how's your legal problem relative to your car dealership? I remember I gave you my legal advice about it.

**kmb333** · September 3rd, 2016 12:29 PM

Originally Posted by Juan Martinez

So, it is already water under the bridge because you already have deposited your money into the seller's account.

Now, my question is, did you have have possession of the car now?
Another question, do you know the seller very well?

You know what, the problem will arise IF the seller will withdraw all the money, close his account, and the PNB cannot be paid anymore. Please take note that the car, as far as PNB is concerned, is still mortgaged with them. So, if they cannot be paid with monthly amortizations as they fall due, PNB may forclose the chattel mortgage on the car. And it will not release or cancel the chattel mortgage unless and until the PNB is fully paid. Right now, PNB is not yet fully paid even if you have already paid the seller the whole amount. In other words, you take a huge risk in this transaction. You better go back to the seller, get your money and pay the bank directly.

Hope this helps.

By the way, KMB333, how's your legal problem relative to your car dealership? I remember I gave you my legal advice about it.

Thanks sir juan martinez for all your help. Everything is ok now.

Regarding this new transaction with pnb, the car is with me right now. The owner was an American. We talked and trasacted everything inside pnb together with the manager sitting with us.

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